My Industrial Tour

7/30/2019 My Industrial Tour

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Bangladesh SteelBangladesh Steel Re-RollingRe-RollingMills LimitedMills Limited (BSRM)(BSRM)

TOPIC:TOPIC: QUALITY MANAGEMENTQUALITY MANAGEMENT

SUBMITTED TO:

Sumon BhattacharjeeLecturer

Department of Accounting & Information SystemsUniversity of Chittagong.

PREPARED BY:

Shamsul ArefeenFourth Year BBA (Hons)

Exam Roll: 2005/61Class Roll: 4329

Session: 2004~2005


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Department of Accounting & Information SystemsUniversity of Chittagong.

CHAPTERCHAPTER ONEONE

1.1.1.1. EXECUTIVE SUMMARYEXECUTIVE SUMMARY

BSRM steels Ltd is one of the leading manufacturers ofdifferent bars in Bangladesh and also the market leader ofthe steels industry. Its Head office and factory are situatedin Chittagong.

BSRMs driving force has been its ability to develop newtechnology combined with a technical service force in co-operation with its customers. Now production Process ofBSRM is fully automated.

Realizing the fact of rapid technology developmentnecessities, constant attention to the field of research,BSRM established well equipped manufacturing process inits factory and engaged highly qualified specialists in this

work.

To optimize customers service BSRM establish CustomerService Department and provides necessary informationwith the request.

Now BSRM is producing all most every type of deformedbars as per local requirements in the hope of helpingcustomers. Recently BSRM has taken plan to export their

products in Middle East Countries.

BSRM is a leading Steel Re-rolling Company in Bangladeshand contributing in the economic development ofBangladesh by paying taxes, employing large number ofgeneral public.

1.2.1.2. OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY


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To gather practical experience about productionprocess of BSRM Steels limited.

To match theoretical knowledge with the practicalapplication.

To fulfill the requirements of the BBA Program. To know how to maintain quality of the product by a

company in the real life.

To know the quality assurance of product in thedifferent level of production process.

To know layout of production process of the factory. To know the product information of BSRM steels

Limited.

1.3.1.3. LIMITATION OF THE STUDYLIMITATION OF THE STUDY

The study was conducted for two days and we remained inthe factory and head office for about 5 hours which is notenough to get a detailed idea of the company. Moreover Infactory the production officer did not provide all theinformation as required preparing the report. In head office

the officer only answered questions we had asked and onlyprovide an annual report. Moreover we did not get any costinformation. So the report is prepared only on based onannual report and internet information provided by them.

1.4.1.4. METHODOLOGY OF THE STUDYMETHODOLOGY OF THE STUDY

The information presented in the report is mainly collected

by visiting the factory and head office. In factory I havecollected the information through getting answer of thequestions. Moreover I have collected some informationthrough getting some documents from the productionmanager and quality assurance officer. Since tour isconducted for two days, I have collected some informationfrom the head office. In head office, an accounts officergave us an annual report for getting financial information.Moreover he answered some question regarding

accounting, finance and marketing. I have also collected


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some information from browsing the companys websitenamed http://www.bsrm.com.

CHAPTER TWOCHAPTER TWO

2.1.2.1. AN OVERVIEW OF BSRM STEELAN OVERVIEW OF BSRM STEELMILLS LIMITEDMILLS LIMITED

BSRM steels ltd was established in 2002 and started itscommercial production in 1st April, 2008. Its authorized capitalis taka 200 Crore and its issued and paid up capital is taka145 Crore. BSRM steels ltd has listed in stock exchange in 18January, 2009. The head office is situated at Sadarghat, andit has factory at 4 Fouzderhat Industrial Estate, Sitakuinda,Chittagong. The management system follows managerialpattern. It has 116 skilled workers, 60 officers and 40 staff. It

operates the productions in 03 shifts consisting of 8 hours pershift. BSRM is successful in ensuring the workers jobsatisfaction.

Senior manager (Procurement) and Manager (Industry) dealproduction sector. The M.S. Billets are the raw materials ofBSRMs Products that are imported and procured by theMegna Engineering Works (MEW) a sister concern of BSRM.The production capacity is 375,000 MT per annum. The

utilization rate is near about 93%. Machineries have beenimported from England. BSRM has set up another steelfactory at Baizid Bostami in Chittagong to meet the increasingdemand. The brand name of their products is BSRM. It is anISO certified manufacturing concern. It usually follows costbase pricing. They do not discriminate the prices of theirproducts.

BSRM follows direct marketing philosophy. The marketing

department executes plan on the weekly, monthly, and yearlybasis. In order to promote their products, they normally use


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print, audio and video advertisement media. Since they selltheir products directly, they do not use any middle distributor.BSRM has some foreign customers.

The major competitors of the BSRM are Kabir Steel Re-rollingMills (KSRM), Sheema Steel Re-rolling Mills (SSRM), RahimSteel and Bashundhara Group.

2.2.2.2. SWOT ANALYSIS OF BSRMSWOT ANALYSIS OF BSRM

SWOT (or TOWS) is an acronym for strengths, weakness,opportunities and threats. A SWOT analysis, a subset of the

broader situation analysis, is used to assess the fit betweenan organizations strategy, its internal capabilities (i.e. itsstrengths and weaknesses) and external possibilities (i.e.its opportunities and threats).

Analysis for SWOT of BSRM is given in the table

Strength

1. Quality of our products.2. Best technical and managerial support.

3. Direct distribution to the end users.4. Long time experience in M.S products.5. Goodwill.

Weaknesses1. Labor unrest.2. Dependence on outside transports.3. Always not ensure every size of products.

Opportunities1. New mills are going to set up at Baizid Bustami.2. Support of engineers and developers.

3. Increasing demand for the products.

Threats

1. Strong competitions.2. Lack of financial institutions help.3. Lack of governments support4. Fluctuation in foreign currencies.

2.3.2.3. BSRM VALUESBSRM VALUES


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Sustainable growth: consistent improvement in the qualityof products and services, Efficiency of process andprofitability of business, continuously anticipating andresponding to the changing business and environmental

needs using innovation, sharing knowledge and experiencewithin the organization.

Quality: Creating products and services valued by ourcustomers , constantly improving our processes throughinnovation and adopting best practices; reducing wastage ;minimizing cost; investing in systems and technology anddeveloping our people to build a highly capable workforce.

Reliability: Be the preferred business partner of ourcustomers and suppliers by offering quality products;providing our best and timely services before, during andafter the business transactions; and honoring all ourcommitment despite challenges.

Trust: Preserve the faith and goodwill of all ourstakeholders- customers, shareholders, suppliers,employees, regulatory bodies, and society by adopting

ethical and transparent business practices, being fair andhonest in all our dealing and building robust governanceand risk management process.

Leadership: Be a role model, setting benchmark throughour products, Processes and people; constantly movingahead of competition by differentiating our products,innovating our process, increasing our market share andnurturing talent to develop leaders within the organization.

Social responsibility: Acknowledge and fulfill ourobligation towards the society by undertaking initiatives forthe general upliftment of the society, building capability andmaking facilities available to the underprivileged.

Customer satisfaction: Delight our external and internalcustomers at every stage of our interaction with them byduly understanding their needs, offering them our bestproducts and services treating them respect and actively

seeking and action on their feedback


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2.4.2.4. THE PRODUCT AND THE PRIDETHE PRODUCT AND THE PRIDE

BSRM Steels Limited produces a low carbon wieldablequality high strength and high ductility concrete reinforcingbar that is now extensively used all over the world. It is theonly reinforcing bar used in construction in the 25 membernations of the European Community. The region aroundBangladesh, Malaysia, Thailand, Singapore and India hasadopted Grade 500 steel almost exclusively in all of theirupscale constructions. The use of Grade 500 concretereinforcing bar requires 15% less steel in any constructionproject. Further, the high ductility of Grade 500 barsensures greater safety during any natural disaster.

BSRM Steels Limited now brings this concrete reinforcingbar to every district of Bangladesh. This is consistent withBSRMs core philosophy of bringing the best and mosteconomical construction steel for the building industry andthe general people.

For the convenience of the general consumer, BSRM hasbranded its Grade 500 reinforcing bar as Xtreme RB500W which has become a widely recognized brand ofsteel throughout the country. BSRMs Xtreme 500W fullycomplies with the leading international and nationalreinforcing bar standards. Among them:

a. BDS ISO 6935 RB Grade 500W.b. BS 4449 Grade 500.

c. I.S. 1786 Grade 500.

Xtreme 500W is superior to each and every type of steelavailable in the local market due to the following reasons:

Economy in Design: This new bar has yield strength of500 Mpa while normal high strength bars in the markethave yield strength of 415 Mpa only. Thus, it is 20.8%stronger than Grade 60 bars reqiuring 15% less quantity of

steel in constructions.


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Economy in Construction: Xtreme 500W bars areweldable and save steels in splicing of steel bars incolumns and beams.

Safer in Design: Superior ductility and endurance as thesteel is heat treated by a unique and patented DanieliQTB process. This ensures easier bending so there is nodanger of brittle breakages. Superior fatigue resistance tovibration and shock loading offers bonus protection againstearthquakes and wind surges. BSRM Steels Ltd. is the onlybar manufacturer in the country to have invested in thispremium European technology.

Safer in Construction: Welded Xtreme 500W welded barcages are very rigid and can resist shearing forces and willnot distort when pouring concrete or be affected byvibrators. Bars tied with wires dislocate readily under theweight of fresh concrete and vibrators. Dislocation of bars isdangerous as tensile forces may act in location wherereinforcement is absent.

2.5.2.5. QUALITY MANAGEMENTQUALITY MANAGEMENT

2.5.1.2.5.1. INTRODUCTIONINTRODUCTION

BSRM was the first steel company in Bangladesh toreceive ISO 9001:2000 Certification .The systems hasbeen continuously modified and developed in manysurveillance visits by the lead assessor and BSRM

continues to develop it in manner consistent withinternational certification practices. The company is also inthe process of securing the globally acknowledged, U.K.based CARES product certification and registration. Theaim of the system is to work for the consistent assurance ofquality and its implementation will ensure product qualityand thus customer satisfaction. Due to the nature of theindustry, where in-process materials are not present, Finalproduct testing is done in a modern testing lab equipped

with computerized testing machines to ensure chemical


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and mechanical properties. Finished goods are stored inintermediate quarantine until clearance from quality controland then stored in the finished goods storage area readyfor delivery. Product traceability is ensured through a label

that shows the date of production and other informationsuch as diameter, length, weight of bundle and grade. Thisquality system ensures the best way to trace any productback to its date of production to verify the differentproduction conditions at that time and the source of rawmaterials used. This traceability is an integral part of theprestigious CARES certification scheme.

2.5.2.2.5.2. QUALITY CONTROLQUALITY CONTROL

The company maintains standard quality of the product.And it also has program for improving the quality of theproduct.

Research and development departmentThe company has R&D department for improving theproduct quality.

Standard of quality of the product:Their product standard is approved by BUET. Though thestandard is 500 MPa, they follow the standard of 520 MPa.If any sample can not fulfill the minimum standard 520MPa, they reject the sample lot.

Countries from where the necessary machineryimported:The imported machinery of the company comes from

China, Malaysia, Indonesia, etc.

Brand name of their product:BSRM

Ensuring quality control:

The organization ensures the quality by

i) Continuous checking process in every stage of theproduction


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ii) Chemists & Engineers ensure the product lot isunder the standard quality.

iii) By using Universal Testing Machine (UTM), theytest standard of their product. (Sample must be

required minimum standard 520MPa)iv) By using Bend Re-Bend Testing Machine (BRTM),

they test the bending capacity of their product.

2.5.3.2.5.3. QUALITY TEST MACHINESQUALITY TEST MACHINES

A. Bar Bending Mandrel :

It is a machine by which some specific properties ofReinforcement are tested. The tests are bend test. Atthe bend test the finish products sample is bended by1800.

1) The result of bend test will be positive if the bendedsample is not broken or cut.

2) The result of bend test will be negative if the bendedsample is broken or cut.

Figure: Bar Bending Mandrel

B. CNC Roll Turning Lathe :

It is computer Numerical control Lathe machine. A vast

quantity of controlling can be done machine. Such as:To decrease higher iron made objects to lower diameter


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objects, to make thread on iron made

Figure: CNC Roll Turning Lathe

C. Universal Testing Machine (UTM) :

It is a Machine by which tensile properties ofReinforcement are tested. Yield strength, Tensilestrength & Elongation of Reinforcement are obtainedfrom this machine.

Figure: Universal Testing Machine (UTM)

D. Computer attached with UTM :

A computer is attached with the Universal TestingMachine. The tested datas of UTM are transferred tothis computer. Then the computer shows the graphicalrepresentation of Yield Strength, Ultimate TensileStrength & Elongation of Reinforcement.


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Figure: Computer attached with UTM

2.5.4.2.5.4. ENVIRONMENT POLICYENVIRONMENT POLICY

BSRM Steels Ltd. is committed to deliver quality and

modernized products to meet the requirements of ourcustomers, partners and other interested parties on time.

We are dedicated to ensure environmental improvementand to avoid its all impacts through our continualimprovement of business performance comply with relevantinternational and local legislation.

BSRM Steels Ltd. is prepared to face any types of

emergencies and to reduce theenvironmental pollution bycontinual improvement through setting measurable andachievable environmental objectives and its implementationand reporting.

2.5.5.2.5.5. QUALITY POLICYQUALITY POLICY

BSRM Steels Limited will strive to improve quality of its

products by innovative approach & through excellence in allfacets of its activities.

We are committed to maintain & enhance the trust andconfidence of millions in this part of the world. We willendeavor hard to find a rightful place in global steelindustry.

This policy will be communicated across the organization

for establishing & reviewing quality objectives & conduct


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business direction in line with all the requirements of qualitymanagement standard.

2.5.6.2.5.6. STAGES OF QUALITY CONTROLSTAGES OF QUALITY CONTROL

In the factory Quality is tested in three stages. In Firststage, raw material (billet) is tested to ensure amount ofcarbon, in Second stage Quality is tested in processproduct and then finally finished product is tested to ensurespecial characteristics. In three stages following are alwaysensured:

Quality group is present. Fully automated facility. Quality group consists of specialists. 100% supervision is present. Quality checking at the proceeding stages is strictly

maintenance by the quality group.

Heat, temperature, fuel, water sprinkling etc. is setafter finding out the appropriate accuracy for everyitem.

Manual activity is present only where necessary. Program and Logistic Control (PLC) procedures are

done for every item and stages.

Continuous observation by the experts. The billets are charged to the furnace according to

the heat numbers.

Every reading & ratings are kept to make the qualityas desired.

Experts are ready and alert to ensure the machineactivity 100%.

Necessary cooling work or back up is provided byhigh speed cooling fans set at the perfect position.

2.5.7.2.5.7. OTHER FEATURES RELATED TOOTHER FEATURES RELATED TOQUALITYQUALITYASSURANCEASSURANCE

Production is from world-class high-speed fully


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automated plant of European Origin, the FirstAutomatic Plant in Bangladesh.

Production is maintained at controlled temperaturewith high finishing temperature during rolling. Re-

bars are cooled in automated walking beam coolingbed. The mechanical properties of the bars are thusguaranteed to be uniform.

Fully automatic PLC controlled reheating furnaceensures Billets are heated uniformly with fullycomputerized temperature control.

Weight per meter is with minus tolerance (forconsumer benefit) as per National and InternationalStandards Specification.

Strict quality control is maintained at every stage ofproduction and 100% tractability maintained duringproduction.

BSRM frog mark appears on each meter length ofRe-bars to ensure genuineness.

2.5.8.2.5.8. FEATURES OF ISO RELATEDFEATURES OF ISO RELATEDISSUES OF BSRMISSUES OF BSRM

BSRM obtained their ISO 9001: 2000 in the year2000.

BSRM is the first steel manufacturing organizationthat got ISO 9001: 2000 in Bangladesh.


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For BSRM the checking and observation authority isURS, which is affiliated by ISO.

The inspector of URS is basically come fromPakistan.

The inspection is done by every six months. The non-conforming issues are mitigated by BSRM

according to the given mitigation criteria by the

authority.


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2.5.9.2.5.9. MINIMUM STANDARD REQUIREMENT FOR MECHANICALMINIMUM STANDARD REQUIREMENT FOR MECHANICALTESTINGTESTING

BSRM Steels LimitedMinimum Standard Requirement for Mechanical Testing

BSRMSL Standards BSRMSL Standards BSRMSL Standards

YieldStrength

UltimateStrength

STS/YS

Minimum Elongation in8" GL (%)

Mandrel Diameter for 1800 Band Te(MM)

Grade MPa MPa10

MM

12,16,20

MM

22,25MM

28,32MM

8MM

10MM

12MM

16MM

20MM

25MM M

XTRME500W

500 to550

575 to635

1.15 14 14 14 14 36 36 48 80 100 160 2

Source: Quality Assurance Department BSRM Steels Limited.

1


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2.5.10.2.5.10.CHEMICAL COMPOSITION OF INCOMING RAW MATERIALSCHEMICAL COMPOSITION OF INCOMING RAW MATERIALS(BILLET)(BILLET)

STEEL

GRADE

CHEMICAL COMPOSITION OF BILLET

%C % Mn %Si %P (Max) %S (Max) %Cr (Max) %Ni(Max) Tungsten(Max) %Cu Al(Max)

GR 60 0.30-0.36 1.10-1.60 0.25-0.35 0.05 0.05 0.16 0.16 0.045 0.25 0.30

GR 40 0.14-0.25 0.60-1.10 0.15-0.25 0.05 0.05 0.16 0.16 0.045 0.25 0.30

WR-8 0.08-0.10 0.30-0.70 0.06-0.10 0.05 0.05 0.16 0.16 0.045 0.30 0.30

SK-40 0.39-0.47 0.60-0.90 0.10-0.16 0.04 0.04 0.16 0.16 0.045 0.30 0.30

SUPER-7 0.56-0.64 0.70-1.00 1.80-2.20 0.035 0.035 0.15 0.15 0.045 0.25 0.25

1


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2.5.11.2.5.11.PROCEDURES AFTERPROCEDURES AFTERPRODUCTIONPRODUCTION

Finish products quality is checked at the highlymodern equipped material-testing lab.

The percentage of acceptance and rejection of iskept though the rate of rejection is very negligible.

Specialists are recruited at the finish product testinglab.

Weight, size, dimension, length etc, are strictlychecked and ensured for finish product accuracy.

At final product testing laboratory the tensilestrengths are maintained basically.

The samples of every lot is kept to face the complainof customer in a fare way.

International standards are maintained for finishproducts

Computer software are used to enhance theaccuracy of the product (such as Auto CAD for

product design)

Finish products weight measurement is done through

automatic machine without any touch of human.

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CHAPTER THREECHAPTER THREE

3.1.3.1. RECOMMENDATIONRECOMMENDATION

Though the company is the market leader of steel industryand adopted almost all of measures comparing to othercompany, the following measures should be taken by thecompany:

1. The company should reduce it unit production costas early as possible to reduce price per ton becauseits price is more than other companies price.

2. The production of the company has to increasebecause the production is lower than the demand ofthe product. In market, their product demand is veryhigh.

3. The company should Increase its production capacitybecause its products has huge demand in themarket.

4. Take apart housing estate need built up foremployees who are working in the productiondepartment.

3.2.3.2. CONCLUSIONCONCLUSION

The report has revealed the quality management andperformance of BSRM Steels Limited for the year 2009and first six month of the year 2010. After the tour inOctober 9, 2010, we get broader idea regarding the qualitymanagement for preparation of report, they provided somedocument based on which report is prepared. We alsoobserved some quality test in the side which gave us the

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quality of 60 grade bar. Form this tour we also observedthat BSRM Steels Limited greatly ensure their productquality and for which they offer high price for its product.Moreover, BSRM continuously inspect its product quality

by a team of BUET after every six month. So, it can beconcluded that BSRM has tried best in its qualitymanagement.

2020


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REFERENCESREFERENCES

Annual report of 2009 of BSRM steels Limited.

Half yearly un-audited Annul Report of 2010.

Web address of BSRM steels ltd

(http://www.bsrm.com).

Other documents provided by the head office.

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